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Ohio BWC to Invest $30.5 Million in Venture Capital Firms
COLUMBUS, Ohio -- The Ohio Bureau of Workers' Compensation plans to fund seven venture capital firms with a total of $30.5 million as part of the state's economic development plan and Gov. Bob Taft's Third Frontier Project. The seven venture capital firms were selected because they expressed an interest in finding and funding new advanced technology companies in Ohio. Firms receiving investments include Early State Partners, Cleveland; Charter Life Sciences and Triathlon Medical Ventures, both in Cincinnati; Draper Triangle Ventures, Pittsburgh; Seneca Partners, Birmingham, Mich.; EDF Ventures, Ann Arbor, Mich.; and Technology Venture Partners, Minneapolis."While we never would mandate a manager do business with only companies in one region or state, we believe these seven firms will promote a proactive business climate in Ohio while developing, retaining and expanding the talent pool of Ohio workers," says James Conrad, BWC administrator and chief executive officer. "The investment strategies of these seven firms clearly mirror the objectives of BWC's investment policy, which are keeping employer costs low while ensuring injured workers get high-quality treatment," Conrad says.Andrew E. Doehrel, president and chief executive officer of the Ohio Chamber of Commerce, says the bureau's investment will"help get valuable capital to high-tech, start-up companies in a responsible way and ensure the future growth of Ohio's economy."BWC put out a request for proposal in December seeking venture capitalists to fund start-up Ohio companies that are involved in technology-based industries such as biomedical and fuel cell research, polymers and advanced materials. From those responses, BWC made a recommendation to approve seven firms to the Workers' Compensation Oversight Commission, who concurred with the bureau's decision.Conrad believes these firms have the ability to successfully identify new and existing companies in Ohio that have business plans which parallel the Third Frontier, Taft's $1.1 billion plan to secure good jobs by building world class research facilities, supporting early stage capital formation and promoting the research, development and commercialization of next generation products."Access to venture capital is crucial to attracting the type of high-tech companies that will provide the best jobs in our knowledge economy," notes state Development Director Bruce Johnson. "In addition, their decision to consider the state's overall economic development efforts in their investment plan demonstrates the type of interagency cooperation we are pursuing through Governor Taft's Jobs Cabinet."The Jobs Cabinet, chaired by Johnson, is comprised of 14 state agencies working together to facilitate interagency cooperation in order to enhance Ohio's business environment and to secure good jobs for Ohioans.BWC employs an investment policy that focuses on long-term growth and minimizing risk while seeking to outperform broad market indices and the impact of inflation. Of its $14 billion portfolio, 3% is allocated toward private equity securities. The purpose of investing in venture capital firms is to enhance the overall investment return of BWC's state insurance fund while reducing risk through increased diversification, Conrad says.Visit the Ohio Bureau of Workers Compensation at www.ohiobwc.gov"